What is a Term? Term[turm]noun1.The Term is the length of time a specific insurance Policy is effective. This feature is most commonly found in life insurance, where the Policy is only good for a specific length of time, or “term” of a person’s life. Share | Have A Question About This Topic? Address Thank you! Oops! Related Contents When the Unexpected Becomes Reality Disability happens to more people, more often than you may think, and it lasts longer, too. Term vs. Permanent Life Insurance When considering life insurance, it's important to understand your options. Extended Care: A Patchwork of Possibilities What is your plan for health care during retirement?